Thursday, January 3, 2008

The reporting person, for the account of Pershing Square International, Ltd. ("PSIL"), entered into two separate cash-settled total return swaps with a broker-dealer counterparty for a commission equal to $0.02 per notional share subject to such swaps.

1.The first swap (the "First Swap") was entered into on December 31, 2007 and expires on February 4, 2009. Under the terms of the First Swap (i) PSIL is obligated to pay to the counterparty any negative price performance under $10.7415 for each of the 312,500 notional BGP common shares subject to the swap (the "First Swap Reference Shares"), plus interest, and (ii) the counterparty is obligated to pay to PSIL any positive price performance over $10.7415 for each of the First Swap Reference Shares, plus any dividends paid during the life of the swap.

2. The second swap (the "Second Swap"), also for the account of PSIL, was entered into on January 2, 2008 and expires on February 4, 2009. Under the terms of the Second Swap (i) PSIL is obligated to pay to the counterparty any negative price performance under $10.5534 for each of the 116,800 notional BGP common shares subject to the swap (the "Second Swap Reference Shares," together with the First Swap Reference Shares, the "Reference Shares"), plus interest, and (ii) the counterparty is obligated to pay to PSIL any positive price performance over $10.5534 for each of the Second Swap Reference Shares, plus any dividends paid during the life of the swap. In the case of both the First Swap and Second Swap, all balances will be cash settled and there will be no transfer to or from PSIL of voting or dispositive power over the Reference Shares.

This is a fascinating trade for Ackman. Readers may remember Sears Holdings (SHLD) Eddie Lampert in 2006 and early 2007 having similar transactions in an undisclosed security.

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